Iran has transferred hundreds of millions of dollars to Hezbollah over the past year through money exchanges and private businesses in Dubai, The Wall Street Journal reported, as Tehran seeks alternative channels to support its Lebanese ally.

According to the WSJ, funds generated from Iranian oil sales are routed through Iran-linked exchange shops, private companies, businessmen, and couriers. The money is then transferred to Lebanon via the informal Hawala system, in which individuals, rather than banks, act as brokers. The system, widely used in Muslim countries, allows money to move discreetly outside conventional banking channels.

A UAE official told The Wall Street Journal that the country is working with international partners to curb such financial activity and prevent its territory from being used for illicit transfers. Hezbollah and Lebanese authorities have not commented on the reported operations, and Iran’s mission to the United Nations did not respond to requests for comment.

The WSJ report notes that the flow of funds comes as Hezbollah rebuilds after suffering significant losses during last year’s war with Israel. The U.S. Treasury Department earlier this year sanctioned three individuals involved in financial networks linked to Hezbollah and Iran’s Quds Force, which has reportedly transferred more than $1 billion to the group since January.

Analysts say the group's annual budget, once estimated at around $1 billion, now exceeds that figure as it seeks to replace destroyed infrastructure, rearm fighters, and compensate families affected by the conflict.

Sources cited by The Wall Street Journal say that with stricter airport controls and the suspension of direct flights between Tehran and Beirut, Hezbollah increasingly relies on travelers carrying smaller amounts of cash or valuables that can easily be concealed. The group also maintains other sources of revenue internationally, including alleged involvement in drug and diamond trade, and uses additional routes through Turkey and Iraq.

U.S. officials are pressing Lebanon to take action against the “Al-Qard al-Hassan” Association, a Hezbollah-linked financial entity operating outside the supervision of Lebanon’s central bank. Washington is seeking to halt practices that allow the group to expand assistance programs to individuals connected to Hezbollah’s operations.

Experts say Iran’s financial support remains vital to Hezbollah’s survival and reconstruction, and that despite increased scrutiny and sanctions, the group continues to maintain extensive international networks to fund its operations.